Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2011

Sales And Use Tax Law

CHAPTER 3. THE USE TAX

Article 3. Presumptions and Resale Certificates

Section 6245.5

6245.5. Exemption certificate; fuel purchases. (a) A person
qualified under subdivision (b) may issue a certificate to a retailer with
respect to the amount of manufacturers' or importers' excise tax imposed
pursuant to Section 4081 or 4091 of the Internal Revenue Code for purposes
of subparagraph (B) of paragraph (4) of subdivision (c) of Section 6011 or
subparagraph (B) of paragraph (4) of subdivision (c) of Section 6012 when
purchasing fuel from the retailer.

(b) A person is qualified for purposes of this section if all of the following
conditions are met:

(1) The person was entitled to either a direct refund or credit against his
or her income tax for the manufacturers' or importers' excise tax imposed
pursuant to Section 4081 or 4091 of the Internal Revenue Code for more
than 50 percent of the person's purchases of fuel during the prior calendar
year.

(2) The person's business remains substantially the same as during the
prior calendar year whereby the person expects to be entitled to either a
direct refund or credit against his or her income tax for the manufacturers' or
importers' excise tax imposed pursuant to Section 4081 or 4091 of the
Internal Revenue Code for more than 50 percent of the person's purchases of
fuel.

(3) The person holds a valid California seller's permit.

(c) A person issuing a certificate for purposes of subparagraph (B) of
paragraph (4) of subdivision (c) of Section 6011 or subparagraph (B) of
paragraph (4) of subdivision (c) of Section 6012 is liable for use tax on the
amount of the manufacturers' or importers' excise tax imposed pursuant to
Section 4081 or 4091 of the Internal Revenue Code if the person used fuel
purchased under the certificate in a manner whereby the person is not entitled
to a direct refund or credit against his or her income tax of the federal excise
tax.

(d) A person liable for the use tax under subdivision (c) of this section
shall report and pay that use tax with the return for the reporting period in
which the person uses the fuel in such a manner that the person is not entitled
to a direct refund or credit against his or her income tax of the federal excise
tax.

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